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Tuesday, 28 August, 2001, 08:44 GMT 09:44 UK
India tea industry 'facing crisis'
India's tea industry is warning it is at crisis point because of the growing popularity of soft drinks in the country.

Prices are at their lowest for three years.

The president of the Tea Association of India, Umang Kaloria, told the BBC that the increased popularity of soft drinks such as cola reflected heavy promotion campaigns by international manufacturers that the tea industry could not match.

Cheap imports from Indonesia, Kenya, Sri Lanka, Vietnam and China are also said to be threatening domestic producers.

Mr Umang Kaloria said exports only accounted for about 25% of India tea production and there was little scope to increase this due to high production costs.

From the newsroom of the BBC World Service

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